Loading...
01/10 17:55
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with significant year-over-year increases in revenue, net income, and adjusted EBITDA. Membership growth is robust, and digital accounts have surged, indicating a positive market response. Despite some concerns about new unit guidance and macroeconomic caution, the Q&A reassures strong monetization and strategic pipeline management. The company's raised revenue guidance and consistent free cash flow further support a positive outlook, suggesting a likely stock price increase in the 2% to 8% range over the next two weeks.
Total Revenue $761 million, an increase of 14% year-over-year, driven by a 14% increase in membership dues and enrollment fees and a 14.4% increase in in-center revenue.
Comparable Center Revenue Grew 11.2% year-over-year, attributed to strong performance in dues and in-center businesses.
Average Monthly Dues $219, an increase of 10.6% year-over-year.
Average Revenue Per Center Membership $888, an increase of 11.8% year-over-year.
Net Income $72.1 million, an increase of 36.5% year-over-year, includes approximately $9 million of tax-affected losses on sale leaseback compared to a $6 million tax-effected gain in the prior year quarter.
Adjusted Net Income $84.1 million, an increase of 60.5% year-over-year, excludes the impact of gains and losses on sale leasebacks.
Adjusted EBITDA $211 million, an increase of 21.6% year-over-year, with an adjusted EBITDA margin improvement of 170 basis points to 27.7%.
Net Cash Provided by Operating Activities $196 million, an increase of approximately 15% year-over-year.
Free Cash Flow $112 million, marking the fifth consecutive quarter of positive free cash flow.
Life Time Digital Accounts 2.3 million accounts, an increase of 216% year-over-year.
LTH Nutritional Supplement Line Revenue Increased by 31% year-over-year.
Life Time Digital: Now has 2.3 million accounts, up 216% year-over-year. Recently launched L.AI.C, an AI-powered personal health companion for digital and center access members.
LTH nutritional supplement line: Revenues up 31% versus the prior year quarter.
MIORA locations: First 2 locations performing well with subscription and revenues growing month-over-month. Several additional locations slated to open in the second half of the year.
Club openings: Targeting 12 to 14 new club openings in 2026, with an average size of nearly 100,000 square feet, primarily ground-up developments. This is an increase from the 78,000 square feet average of clubs opened in 2024 and 2025.
Membership growth: Ended the quarter with 849,000 center memberships and 899,000 total memberships (including on-hold memberships). Average monthly dues grew 10.6% year-over-year to $219. Average revenue per center membership increased 11.8% to $888.
Financial performance: Total revenue increased 14% to $761 million. Adjusted net income rose 60.5% to $84.1 million. Adjusted EBITDA increased 21.6% to $211 million, with a margin improvement of 170 basis points to 27.7%. Free cash flow was $112 million, marking the fifth consecutive quarter of positive free cash flow.
Operational efficiency: Visits per membership up 5.7% year-over-year. Retention at record levels, improving over the prior year quarter.
Asset-light expansion: Sale-leaseback transactions generated $149 million in net proceeds in Q2, with another $100 million expected in the second half of the year. Focus on high-margin expansion opportunities.
Credit rating improvement: Achieved a BB credit rating, enabling lower interest costs and increased earnings.
Sale-leaseback dependency: The company relies on sale-leaseback transactions to generate cash flow, which could expose it to risks if the market for such transactions becomes less favorable or if property values decline.
Debt and interest costs: While the company has achieved a BB credit rating, any changes in interest rates or credit conditions could increase borrowing costs and impact financial performance.
Expansion risks: The company plans to accelerate new club openings, which involves significant capital investment and operational challenges. There is a risk of delays, cost overruns, or underperformance of new locations.
Economic conditions: Economic uncertainties could impact membership growth, retention rates, and in-center revenue, especially given the premium pricing of memberships.
Digital and AI initiatives: The success of new digital and AI-powered offerings, such as L.AI.C, is uncertain and could face adoption challenges or fail to generate expected revenue.
Supply chain and construction: The development of new clubs, particularly ground-up projects, could face supply chain disruptions or construction delays, impacting timelines and costs.
Full Year Comparable Center Revenue Guidance: Raised to be between 9.5% and 10%.
Club Openings in 2026: Targeting 12 to 14 new club openings, averaging nearly 100,000 square feet, primarily ground-up developments.
Sale-Leaseback Transactions: Expecting to close another $100 million in transactions in the second half of the year.
Life Time Digital Accounts: Now at 2.3 million accounts, up 216% year-over-year.
L.AI.C AI-Powered Health Companion: Recently launched for digital and center access members.
LTH Nutritional Supplement Line: Revenues up 31% versus the prior year quarter.
MIORA Locations: First 2 locations performing well with subscription and revenue growth month-over-month; several additional locations slated to open in the second half of the year.
The selected topic was not discussed during the call.
The earnings call summary shows strong financial performance with raised revenue guidance and growth in digital accounts. Product development is promising with the launch of new AI and nutritional products. Market strategy is clear, focusing on high-value memberships and expansion. Despite potential risks, the Q&A reveals no signs of consumer weakness and confidence in new club openings. However, management's vague response on stock buybacks and cost management may cause slight concern. Overall, the positive aspects outweigh the negatives, leading to a positive sentiment for the stock price in the short term.
The earnings call highlights strong financial performance with significant year-over-year increases in revenue, net income, and adjusted EBITDA. Membership growth is robust, and digital accounts have surged, indicating a positive market response. Despite some concerns about new unit guidance and macroeconomic caution, the Q&A reassures strong monetization and strategic pipeline management. The company's raised revenue guidance and consistent free cash flow further support a positive outlook, suggesting a likely stock price increase in the 2% to 8% range over the next two weeks.
The earnings call reveals strong financial performance with significant revenue and net income growth, a raised revenue and EBITDA guidance, and positive cash flow. Despite macroeconomic uncertainties and potential tariff impacts, the company maintains a strong balance sheet and competitive strategy. The Q&A session highlighted positive membership trends and strategic club management, although some responses lacked clarity. Given the company's market cap and overall positive outlook, a positive stock price movement of 2% to 8% is expected over the next two weeks.
The earnings call reveals strong financial performance with significant revenue and net income growth. The company raised its guidance, indicating confidence in future performance. Despite potential economic and supply chain challenges, management has plans to maintain debt levels and leverage AI for efficiency. Positive analyst sentiment in the Q&A and optimistic guidance further support a positive outlook. Given the company's market cap, the stock is likely to experience a strong positive reaction, as the impressive financial metrics and strategic initiatives overshadow the risks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
